Schering-Plough’s Hassan On Growth and Hard Times in Global Markets

By Scott Hensley

The pharmaceuticals business may be tough all over these days. But some places are tougher than others.

Take Europe, for instance, where economic slowdowns are leading some countries to redouble their efforts to restrain health spending. “When governments come under stress…they really have to do drastic things,” Fred Hassan (pictured), CEO of Schering-Plough, told the Health Blog during a recent visit.

When it comes to health budgets, he said, a nation’s doctors, hospitals and pharmacists have political pull. That means “there’s a tendency to squeeze drugs a little harder,” Hassan said.

Some counties are having more financial trouble than others. In Italy, a slow growing economy has already crimped sales of some Schering-Plough products, like rheumatoid arthritis treatment Remicade (the J&J drug that Schering-Plough has rights to outside the U.S.). Hassan said the company sells more Remicade in Sweden (population 9 million) than in Italy (population 58 million).

Schering-Plough may be more aware of the vicissitudes of overseas markets than other American pharma companies. International sales account for about 70% of the company’s revenue, Hassan said.

The darkening situation in some parts of Europe may lead Schering-Plough to trim some growth projections for next year and beyond, he said. But the slowdowns there may be offset by strong performance elsewhere. Hassan listed a number of vigorous markets for the company, including predictable places like Brazil and Russia, and some off the beaten path, like Slovenia.

Comments (5 of 8)

Give me a break! It's all the fault of somebody else. Fred Hassan has led Schering-Plough into a deep hole, by his decisions and actions. carrie Cox and others have accelerated the slide. This management team is pathetic, yet the Board does nothing. That's because Fred owns them! There needs to be a stockholder revolt against the Board and the executive team!

11:43 am October 5, 2008

SP 2 wrote :

Would you buy a used car from this man? No way! Then why would you believe his whining? He can no longer be considered a "savior." In fact, the more that is known about him, it becomes obvious that he really did little at other companies. His star has fallen, burned out. People are seeing him for what he really is, a phony. His selection of executives is also horrible. It is not likely that SP will ever make it out of the hole that he, Carrie and their cronies have dug. The company is a house of cards!

7:56 pm October 4, 2008

Carrie should be able to grow product lines from Organon wrote :

Assuming 10% growth of Organon's $5 billion product line, that is $500 million growth many miss

2:44 am October 4, 2008

ex organon employee wrote :

Fred nice to see more rhetric.
Q Why did you pay so much over the odds for Organon ?

2:30 am October 4, 2008

pharma investor wrote :

When does Carrie S. Cox go to jail for her insider trading and how long can FH keep WS believing in "the pipeline" - he is just waiting for a buyer so he can make more millions - not a motivated CEO if you ask me! Move over Hassan and go golfing!